Jonan: Oil price fall main factor of shrinking state revenues

Jakarta (ANTARA News) - Energy and Mineral Resources (ESDM) Minister Ignasius Jonan said worlds oil price fall is one of the biggest factors reducing the state revenues.

"The shrinking state revenues from the energy and mineral resource sector was caused by a number of factors. One of them is the oil price fall in the world market," Jonan said here on Thursday.

Based on official data at the ESDM Ministry , in 2014, the state revenues from the oil and gas sector reached Rp320.25 trillion, renewable energy sector Rp750 billion and coal mineral Rp35.4 trillion or a total of Rp356.4 trillion.

In 2015, the total revenues dropped to only Rp153.03 trillion and in 2016, shrank again to Rp111.97 trillion.

In the first nine months of this year, the revenues rose to Rp118.69 trillion that it would be almost certain that the total revenues in 2017 is higher than in 2016.

The peak in revenues in 2014 was thanks to high oil prices averaging US$89.08 per barrel as against only US$50 to US$55 per barrels in 2017.

The governments policy of raise royalty rate in a bid to boost investment in the oil and gas sector, also contributed to the decline in the state revenue, Jonan said.

He said apart from seeking to increase the countrys production of oil and gas and renewable energy, the ESDM Ministry is focusing on improving the quality of oil and gas products to be competitive in the market.

He said the governments target for oil production has been set at 815,000 barrels per day , but realization averages only 800,000 barrels per day.

"I think the daily production is still below 815,000 barrels per day until the end of the year," the minister said.

Indonesia has become a net importer for oil since 1984, but it still is a major exporter of natural gas in the form of liquefaction natural gas (LNG). (*)